Do I need a fully-loaded vehicle?

When I was younger, my mother always used the saying: “Your eyes are bigger than your belly”. What exactly is the meaning of ‘fully loaded’ regarding vehicles?  In a nutshell, it essentially describes a vehicle that has most of, if not all of the available equipment and options.  If you’re in the market for a used vehicle, you would most definitely enjoy getting the most out of your hard-earned money, and this could have a major impact on the amount that you’ll spend, before, during, and after ownership, versus what you actually need.

Automotive manufacturers normally create their vehicles at an affordable price.  This is done by offering multiple models of the same car.  Requesting an exotic set of wheels or a rare style of paint will cost a premium. The same could be said for leather and heated seating, sunroof, and apple play.  These extra features could increase the cost of a vehicle by upwards of $10,000+ at the time of purchase and will have no effect on the performance of the vehicle. 

Owning the highest trim will cost much more and yield larger car payments.  If your credit is not where you and your financing need, interest rates will be higher, and it will hinder the time it takes to build credit. During this process, most will opt to enjoy a vehicle in their financing price range. This is extremely important. In addition to building credit, you’re also creating the foundation of trust. Most opt to enjoy their vehicle for a year or two, then once established, trade up a step in comfort or appearance. 

In addition to car payments, we’re required to own insurance. If leased or financed, your insurer will most likely request full coverage. High-end and fully equipped models will cost more. When it’s time to sell or trade your vehicle, having the slickest wheels, glossy red paint, or most options might not necessarily return a higher value. The extra hundreds funneled into insurance should more wisely be used towards car payments.

Amount to buy vs Amount for Trade In, Courtesy MotorTrend

If I needed to build credit and earn the trust of financing and insurance, I would elect for a less luxurious or older fully equipped vehicle and pump a greater amount towards car payments. After a year or two of sustaining consistency, insurance rates will decrease, and finance will feel comfortable lending a larger amount with reduced interest. The most important element is getting into a vehicle immediately to improve both your present and future!